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Tax revenues have surged when the capital gains rate has been cut
A '''Capital-gains Tax''' is a fee on the sale of [[stock]] or [[real property]], generally computed as a percentage of the thing's increase in value (or "gain").<ref> "A capital gain is the difference between the price received from selling an asset and the price paid for it. An asset can be a home, a farm, a ranch, a family business, or a work of art, for instance." [http://www.econlib.org/library/Enc/CapitalGainsTaxes.html Capital Gains Taxes: The Concise Encyclopedia of Economics] - Library of Economics and Liberty </ref>
A '''Capital-gains Tax''' is a fee on the sale of [[stock]] or [[real property]], generally computed as a percentage of the thing's increase in value (or "gain").<ref name=moore> "A capital gain is the difference between the price received from selling an asset and the price paid for it. An asset can be a home, a farm, a ranch, a family business, or a work of art, for instance." [http://www.econlib.org/library/Enc/CapitalGainsTaxes.html Capital Gains Taxes: The Concise Encyclopedia of Economics] - Library of Economics and Liberty </ref>
America is divided over what this percentage (or "rate") ought to be.
America is divided over what this percentage (or "rate") ought to be.
Economist Christopher Frenze wrote:
Economist Christopher Frenze wrote:
*Three main conclusions follow from the data. First, capital gains realizations and revenues are highly responsive to changes in the tax rate. When this sensitivity is ignored or understated by official revenue analysis, huge errors have resulted, as in the previous capital gains debate. Second, there is no evidence from the actual historical data demonstrating that capital gains tax rate reduction would reduce revenues. Third, on the basis of the historical data on capital gains realizations and revenues, it would be reasonable to expect higher revenues to follow a reduction of the capital gains tax rate. [http://www.house.gov/jec/fiscal/tx-grwth/process/process.htm#endnotes]
*Three main conclusions follow from the data. First, capital gains realizations and revenues are highly responsive to changes in the tax rate. When this sensitivity is ignored or understated by official revenue analysis, huge errors have resulted, as in the previous capital gains debate. Second, there is no evidence from the actual historical data demonstrating that capital gains tax rate reduction would reduce revenues. Third, on the basis of the historical data on capital gains realizations and revenues, it would be reasonable to expect higher revenues to follow a reduction of the capital gains tax rate. [http://www.house.gov/jec/fiscal/tx-grwth/process/process.htm#endnotes]
Stephen Moore concludes that:
*Tax revenues have surged when the capital gains rate has been cut as trillions of dollars of locked-in capital are released to be put to more productive uses.<ref name=moore />
==Notes==
==Notes==